What is a Broker/Dealer
A broker or a dealer is an individual who facilitates a transaction between the buyer and the seller. The broker or his work posses an individual identity. The main function of a broker is to help the buyer meet the seller or vice versa. There are many advantages of using the services provided by the broker to the firm. They are as mentioned below: –
- Approaching a broker would open gates to a huge database possessed by them about the various buyers and seller. This in turn helps the seller or the buyer to get the best possible price.
- The chances of potential buyers and sellers increase when one approaches a broker. A broker would filter out all the unwanted options and provides suggestion which results in a good buy or sale.
These are some of the important benefits provided by a broker or the dealer. The applications of the broker are available in numerous fields. The different types of brokers are mentioned below:-
- Business broker
These are the business intermediary brokers who help the small and medium sized businesses to help find buyers and sellers. These brokers help the businesses to find potential buyers after doing a thorough research about the companies.
- Commodity broker
These are the brokers who facilitate the buyers and the seller in the commodity markets. These brokers engage in selling of commodity contract on behalf of their clients. A commission is charged to the client depending upon the transactions made.
- Customs broker
These are broker who facilitate in clearing of goods between the importers and exporters of different countries. These custom brokers also take up the responsibility of the documentation and also facilitate communication between the importers and exporters.
- Information broker
These are the brokers who hold an individual firm. This firm would research particular information on behalf of the client. Commission is charged to the client once the work is done.
- Insurance brokers
These are the brokers who help the customers to find the right insurance contracts. Helping the customers find the right insurance policy helps them earn commission.
- Investment brokers
These are the brokers who facilitate investments between the buyer and the seller. Investment brokers own a brokerage firm, where they facilitate the investments according to the order of the buyer and the seller. Here investment broker can provide advice regarding the market situation to help the buyers and sellers to gain profits.
- Real estate brokers
These are the brokers who help the buyers to find the right property depending upon the requirements. Commission is charged for the service provided.